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University of California’s Hidden Money Trick

Wednesday April 26th, 2017   •   Posted by K. Lloyd Billingsley at 9:08am PDT   •  

When we last checked in with the University of California they were spending $504 million, more than half a billion dollars, on a computer system that was supposed to cost $156 million. The UCPath project costs taxpayers three times as much as announced, and remains four years behind schedule. UC president Janet Napolitano also spent nearly $1 million to investigate inept UC Davis chancellor Linda Katehi, who cost taxpayers nearly $2 million by pepper spraying students peacefully protesting tuition hikes. As former Arizona governor Napolitano beats the drum for more tuition hikes, up pops a surprise.

According to a new report from California’s state auditor, the UC office of the president is hiding more than $175 million in discretionary reserves. More than one third of this represents unspent funds from a campus assessment. The office of the president wanted to hike this assessment even though the funds were unspent. The office of the president did not disclose the reserves it has accumulated nor did it inform the UC regents of the annual undisclosed budget of $77-114 million it created to spend the funds. The UC office of the president hiked administrative spending by 28 percent over three years but lacks methods for tracking the administrative expenses. Further, the office “intentionally interfered” with investigators and tampered with the responses of the various UC campuses, removing statements critical of the office of the president.

The auditor wants more legislative oversight but UC problems go beyond financial deception and wasteful spending. From 2009 to 2013, Janet Napolitano headed the federal Department of Homeland Security but she can’t maintain order and civil discourse on UC campuses. Indeed, Berkeley explodes into violence over any speaker less than worshipful of political correctness. In security and financial accountability Janet Napolitano is a bust. The UC regents should show her the door at the first opportunity. Taxpayers and students alike will thank them for it.

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April 2017